Cannindah Resources is accelerating drilling at its Cannindah Breccia deposit after identifying mineralisation beyond the existing resource and along a broader 2km structural corridor. An updated resource estimate, incorporating 45 additional drill holes and new metallurgical inputs, is targeted by the end of September.
- Second diamond rig added to resource expansion drilling
- 2024 resource stands at 14.5Mt grading 1.09% CuEq
- Mineralisation remains open along strike and at depth
- Updated estimate to include 45 additional drill holes
- Potential underground extraction to be assessed after the update
Second rig targets resource extensions
Cannindah Resources Limited (ASX:CAE) has added a second diamond rig at the Cannindah Breccia copper-gold deposit, betting that the next resource estimate will have more ground to cover than the current model suggests. The company says drilling continues to intersect mineralisation outside the existing resource, with the system remaining open to the south along strike and down dip.
The move comes as Cannindah prepares an updated Mineral Resource Estimate targeted for release by the end of September 2026. One rig has completed 16 reverse-circulation pre-collars, while both rigs are now drilling diamond tails into interpreted extensions of the mineralised envelope. Assay delays have slowed planning, but have also allowed the company to fast-track drilling beyond the immediate scope of the resource update.
Existing 14.5Mt resource faces revision
The starting point is the July 2024 resource of 14.5 million tonnes grading 1.09% copper equivalent, containing 104.8 kilotonnes of copper, 197.3 thousand ounces of gold and 6.4 million ounces of silver. The revised estimate will draw on 45 additional holes drilled during 2025 and 2026, alongside improved geological interpretation and initial recovery results from 2026 metallurgical testwork.
The estimate is planned to sit within optimised Whittle open-pit shells using assumptions for mining, processing, royalties, concentrate payabilities and metal prices based on 24-month rolling averages. That matters because the update is intended to provide more than a revised geological tonnage: it should also offer a fresh view of how much of the mineralisation fits within a potentially mineable open-pit outline. The filing does not yet provide the resulting economics.
Long intersections point to deeper system
Cannindah highlighted several earlier deep intersections outside the previous pit-shell outline, including 493 metres at 1.17% CuEq from surface, 341 metres at 1.03% CuEq from 58 metres, and 1,022 metres at 0.48% CuEq from 64 metres to the end of hole. The company cautions that these holes were drilled at sub-optimal orientations, meaning the reported widths are not true thicknesses. They nevertheless demonstrate extensive mineralisation at depth, according to the release.
Geological modelling now defines a broader interpreted mineralised corridor extending about 2km along strike, although only roughly 700 metres has been systematically drill tested. The highest-grade ore shoots appear preferentially associated with structural flexures along a major fault and contacts between intrusive diorite and metasediments. Those observations are exploration targets, not yet additions to the formal resource.
Open-pit update precedes underground assessment
Once the updated estimate and supporting data are available, Cannindah intends to assess whether mineralisation beneath a potential open pit could support an underground extraction opportunity. Drilling is also continuing at the Cannindah Breccia while the company awaits assay data needed to plan further work at the Southern Porphyry target.
The immediate test is therefore straightforward: whether the September estimate converts the deposit’s geological upside into a materially larger and more confident resource, and whether the revised recovery and mining assumptions improve the project’s potential economics. Until that work is published, the strongest evidence is still the drill pattern rather than a defined change in mineable inventory.
Bottom Line?
The second rig increases the pace of definition, but the key catalyst remains the September resource estimate and how much of the open mineralised corridor it can support within an economic pit shell.
Questions in the middle?
- How much will the updated resource increase in tonnes, contained metal and confidence categories?
- Will the new metallurgical recovery inputs materially change the project’s potential economics?
- Can deeper drilling support an underground opportunity after the open-pit assessment is completed?